Brickwork gives 'AA-' rating to Future Capital`s NCD issue

Brickwork Ratings (BWR) has assigned BWR AA- with stable outlook for Future Capital Holdings (FCHL) proposed unsecured subordinated non convertible debenture issue of Rs 150 Cr and has upgraded the rating to BWR AA- for the following outstanding issues of Future Capital Holdings Pvt. Ltd.:

Instruments	Assigned / Reaffirmed
Unsecured Subordinated Debt (Rs 150 crore)	BWR AA- (Stable)
	(Assigned)
NCD Issue (Rs 250 crore)	BWR AA- (Stable)
	(Upgraded from BWR A+)
NCD Issue Rs 300 crore	BWR AA- (Stable)
(Including Green Shoe Option of Rs 150 crore)	(Upgraded from BWR A+)

Instruments with BWR AA- rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.

The rating has factored, inter alia, experience of the management, improved business risk profile with shift in focus towards secured retail lending and strong improvement in asset quality. The rating has also factored in the strong capital position, improved financial performance and liquidity profile. The rating is constrained by the concentration risk in the wholesale portfolio, relatively unseasoned nature of the loan portfolio and increasing competition from banks and NBFCs. The rating factors in the promoter Future Group

Read More